S&P rates Ford loan BBB

Standard & Poor's said it assigned a BBB rating to Ford Motor Co.'s $9.3 billion revolving credit facilities consisting of about $300 million due November 2013 and $9 billion due November 2015.

The agency also said it assigned a recovery rating of 1 on both revolving credit facilities, indicating 90% to 100% expected recovery in a default.

The facilities replace Ford's existing revolving credit facilities. The credit facilities are guaranteed by Ford's principal U.S. subsidiaries and secured by a lien on substantially all personal property owned by Ford and the guarantors.

The ratings reflect Ford's prospects for generating free cash flow and profits in its global automotive manufacturing business because of improvement in its U.S. competitive position, S&P said.

The ratings also reflect challenges in Europe and substantial underfunded post-retirement obligations, the agency said.

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